I came across someone claiming to having consistently over funded deals (particularly LBO deals) and taking the difference as a fee for doing the deal. This individual is am owner-investor and targets companies with competent management already in place. He utilizes a combination of bank financing, mezz financing and seller notes. He then takes uses the overage to pay himself a closing fee. Has anyone successfully pulled this off?
From an advisor standpoint (banker, independent financier, lawyer), would you allow this? Or would the buyer have to put this in the "Goodwill" or "blue sky" of the deal?
Is it possible to overfund a deal and take a commission?
by a searcher from University of Arkansas at Fayetteville
More on Searchfunder
Searchfunder is an online community and toolkit for searchfunds. Over 80% of those involved in searchfunds maintain a Searchfunder.com account to help them network, problem solve challenges, and keep up with the industry.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
We maintain partnerships with database providers that make searching more effective, efficient and affordable along with features that help searchers find deals and investors and vice versa.
181 views
6 comments
Sign in to see all replies.
Create an account.